Grameen Financial Services Private Limited (popularly known as Grameen Koota) today completed another round of securitization for a sum of Rs. 31.15 Cr. The Senior A1 Series rated as “P1+” was subscribed to by large mutual fund and the subordinated A2 series rated as "P4+" was subscribed to by IFMR.
This deal was structured and arranged by IFMR Capital, an inclusive-finance company based in Chennai that has worked to enable funding to microfinance institutions through its Rs. 200 Cr. securitization program. The paper was issued as two-part PTCs (Pass through Certificates) rated by CRISIL.
According to Mr .Suresh Krishna, MD Grameen Koota, “This is the second transaction and just shows the tremendous faith that our investors have in us and in growth of Microfinance sector at large. The benefit will definitely go down to our customers as well”.
According to Ms Sucharita, CEO IFMR, “Despite tight liquidity conditions, this securitization has resulted in a significant cost reduction for Grameen Koota. The steady flow of microfinance backed securities in the capital markets can be attributed to the exceptionally strong performance of rated microfinance securitizations and the resulting interest from both, a larger number and a larger variety of investors such as mutual funds and private wealth banks. IFMR Capital has been very pleased with the performance of its second loss investments in Grameen Koota and other transactions.”
This deal will help Grameen Koota to approach newer funding sources, which will prove to be a back bone for the millions of poor and low-income households that the company serves, across India.
With this transaction GFSPL has demonstrated its capabilities to attract diversified investment in the Micro-Finance sector with the Mutual funds having shown interest. This is the second time GFSPL has entered into a securitization arranged and invested into by IFMR Capital and rated by CRISIL, India’s foremost rating agency.
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About Grameen Financial Services Private Limited (Grameen Koota)
Grameen Koota is a well known MFI, headquartered in Bangalore. An NBFC registered with the Reserve Bank of India, Grameen Koota has a portfolio outstanding of Rs. 330.17 crore with a client base of more than 427,144 spread across 37 districts in Karnataka, Maharashtra and Tamilnadu.
Grameen Koota has recently raised its third round of equity of Rs. 27.5 Crore from Micro Ventures Funds, Italy, Aavishkaar Goodwell and Incofin (Belgium). Earlier, Grameen Koota had PE funding of Rs. 9.20 Crore from Aavishkaar Goodwell.